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2022 (5) TMI 524 - HC - Income TaxRectification of application u/s 154 - Period of limitation - Petitioner states the Respondents have committed certain errors in granting credit and calculating interest under Section 234B and Section 244A of the Act in its remand Order - HELD THAT - CBDT instruction No.2/2013 F. No. 225/76/2013/ITA.II dated 5th July, 2013 and Letter F. No.225/148/2015-ITA-II , dated 5th July, 2015 stipulates that the Assessing Officers must strictly follow the time limit of six months provided under Section 154(8) of the Act in disposing of the rectification applications. Further, this Court in Nortel Networks India International Inc. 2022 (3) TMI 155 - DELHI HIGH COURT and Cheil India Private Limited 2021 (10) TMI 1324 - DELHI HIGH COURT has given directions to the respondents to dispose of similar rectification applications in a time-bound manner. Consequently, this Court disposes of the present writ petition and application with a direction to the concerned respondent to decide the petitioner s rectification application dated 8th July, 2021 filed under Section 154 of the Act in accordance with law by way of a reasoned order within six weeks. In the event of refund, if any, the same shall be granted to the petitioner with applicable interest within the aforesaid period.
Issues:
1. Delay in deciding rectification application under Section 154 of the Income Tax Act, 1961. 2. Errors in granting credit and calculating interest under Section 234B and Section 244A of the Act. 3. Non-compliance with time limits for passing rectification orders. 4. Applicability of CBDT instructions and court directions in disposing of rectification applications. Analysis: 1. The petitioner filed a writ petition seeking directions for the respondents to decide a rectification application under Section 154 of the Income Tax Act and grant a consequential refund with applicable interest. The petitioner also requested a refund adjusted against an outstanding demand for a specific assessment year. 2. The senior counsel for the petitioner highlighted errors in granting credit and calculating interest under Sections 234B and 244A of the Act in the remand order issued by the respondents on a previous date. 3. Despite several reminders, the rectification application dated 8th July, 2021, had not been decided by the respondents. The senior counsel emphasized that the time limit for passing the rectification order had expired as per Section 154(8) of the Act. 4. The Court noted the importance of adhering to the time limit of six months provided under Section 154(8) of the Act for disposing of rectification applications, as per CBDT instructions from 2013 and 2015. Additionally, the Court referred to previous judgments directing respondents to handle similar rectification applications in a time-bound manner. 5. Consequently, the Court disposed of the writ petition and application by directing the concerned respondent to decide the petitioner's rectification application within six weeks in accordance with the law, providing a reasoned order. In case of a refund, it was ordered to be granted to the petitioner with applicable interest within the specified period. 6. With the above direction, the Court concluded the matter, emphasizing the importance of timely and lawful disposal of rectification applications under the Income Tax Act, 1961.
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